As usual the China-US bilateral relationship is constantly shifting; and some could even argue that recently it was deteriorating. However, the third round of the annual China-US Strategic and Economic Dialogue (S&ED) held in Washington, D.C. on May 9-10, along with the subsequent Joint Statement, highlighted both governments' flexibility and ability to work together. Shen Dingli, Director of the Center for American Studies at Fudan University, explains that the S&ED is not a "solve-all" mechanism, but a framework to stabilize a vital strategic relationship between the two countries.